- Adtech firm ID5 has raised $6 million in Series A funding.
- The funding comes as Google and Apple plan big privacy-driven changes to how advertisers target and measure ads.
- The firm is chasing a $13 billion industry in identity solutions.
- See more stories on Insider’s business page.
Google and Apple’s moves to clamp down on privacy and digital ad targeting has been a boon for startups trying to find workarounds like identity solutions.
One such firm is ID5, a small European-based startup that just closed its $6 million Series A round of funding from Alliance Entreprendre, Progress Ventures, and 360 Capital Partners. The 4-year-old company has raised a total of $7.5 million.
ID5 is one of a handful of companies building technology to work around third-party cookies. Competitors include LiveRamp, The Trade Desk, and Lotame.
ID5 pitches an ID that helps advertisers find audiences to target and make sure people don’t repeatedly see the same ads. It makes money from licensing its ID to adtech companies like PubMatic, OpenX, and PubMatic with a monthly fee that ranges from $5,000 to $30,000, CEO Mathieu Roche said. The company gives away its technology to publishers (Discovery and Dennis Publishing are among users) to grow adoption of the ID.
Roche said that his firm differentiates itself by only selling identity software whereas other companies sell ads and other services to marketers. Roche said that ID5 has been profitable for more than a year but wouldn’t give reveal its revenue.
Roche said the 14-person company plans to use the money to hire and invest in adtech infrastructure like data centers and servers that power how digital ads are targeted.
“Adoption and usage of the ID is the No. 1 success factor for us,” he said. “We need to double our team in the next six months. That’s the level of investment we need to make in product, infrastructure, account management, and customer support.”
As states roll out privacy laws, ID5 also plans to invest more in the US, which Roche said makes up about half the company’s revenue.
Below are the key slides from ID5’s Series A pitch deck.
Find more pitch decks in our searchable PITCH DECK LIBRARY here.
Despite privacy-focused changes, digital ad spending is growing.
Apple, Google, Mozilla, and regulators are making it harder for advertisers to target ads.
Marketers are expected to spend $13 billion on identity solutions by 2024.
ID5 sells two products: An ID and a cookie-matching product.
ID5 claims that its reach is growing outside of Europe into North America and Asia-Pacific.
ID5's tech works by targeting audiences without using cookies.
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